Regulations Governing Payment Operations of Securities Investor and Futures Trader Protection Funds Article 2

The term "a trade of securities on the stock market" in Article 21, paragraph 1, subparagraph 1 of the Act refers to trades of listed securities on the centralized securities market and trades of OTC-listed securities by means of the computer trading system of the GreTai Securities Market (the "GreTai").The term "completing settlement obligations" in Article 21, paragraph 1, subparagraph 1 of the Act means that a securities investor's consigned trade has been made and the relevant funds or securities transferred or remitted to the securities firm's settlement and clearing account. When regulations require that funds or securities be collected prior to completing the consigned trading order, "completing settlement obligations" means that on a given date on which a securities firm's financial difficulties result in default due to inability to make payment, the funds or securities have already been delivered to the securities firm, an invoice obtained, and procedures for the consigned trade carried out.